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Case Study

Shopping Centre Leasehold Purchase



London tube station shopping centre purchase requiring maximum LTV. With strong tenants and a stable income stream, a 15-year term was achievable at sub 250 bps.
  • Max LTV 70%
  • Term (Years) 15
  • Margin

    Sub 250 BPS


Deal Outline

Assets

  • Retail, hotel and car park
  • London Underground station location

Security

  • First charge over assets

Income

  • From rental of all properties
  • 100% let to strong national retailers
  • 9 year WAULT to break

Requirements

  • Maximum LTV acquisition finance
  • Long term debt
  • Low amortisation

Challenges

  • Large ground lease
  • Multi-discipline assets
  • 20 tenants

Facility Secured

  • 15 -year term
  • Low amortisation for first 5 years
  • 80% LTV at sub bps margin

Summary


A Family Office client was purchasing the leasehold of a shopping centre in London, in close proximity of both Underground and Overground stations. The retail, hotel and car park assets made up a commercial portfolio valued at £25m.

100% of the units were let to strong national retailers and the long WAULT to break meant a 10-15 year term could be considered. They were seeking maximum LTV that could be achieved at “senior” finance pricing with low initial amortisation.

We successfully leveraged the leasehold at 70% LTV at sub 250 bps. The15 year facility compared favourably to the client's existing offer of a highly amortising, 5-year term loan at just 55% LTV.


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